The Cost of the Great Trek to THE CAPE

Figures show that the migration of residents from other provinces to Cape Town is steadily increasing, but many buyers are facing a harsh realitycheck as they.come to realise just how much more expensive property is on average in the Western Cape — and how much less they’re likely to get for the sale price they achieve upcountry. Text Er Images @ Supplied / The reverse Great Trek — this time happening across the raciaL spectrum — has been steadiLy gaining momentum over the past four years, according to Lew Geffen, Chairman of Lew Geffen Sotheby’s InternationaL ReaLty. He estimates that more than 30% of his.company’s sa[es in Gauteng are on behaLf of homeowners reLocating to the Western Cape. JiLL LLoyd, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty in Daremont and Lynfrae in Cape Town, says a few years ago the growing interest from upcountry buyers was mereLy an emergent trend making up a fraction of the LocaE market. “However, it has now become a steady flow which shows no signs of abating, as more and more peopLe are drawn to the reLaxed outdoor LifestyLe, reLiabLe municipaL service deLivery and perceived safety of the Western Cape.”

“However, it has now become a steady flow which shows no signs of abating, as more and more peopLe are drawn to the reLaxed outdoor LifestyLe, reLiabLe municipaL service deLivery and perceived safety of the Western Cape.” LLoyd says that despite the migration becoming.commonpLace, she finds that a significant number of buyers from other provinces are stiLL surprised by the difference in property prices in.comparabLe suburbs. “Some peopLe have a hard time.coming to terms with the reaLisation that they have soLd their mansion in Johannesburg but wiLL orgy be abLe to afford a smaLLer, more modest home for the same money in Cape Town.” Geffen agrees: “ALthough many peopLe are generay aware that property is more expensive in the Cape, the reaLity can be a nasty shock, especiay when Looking at homes in the most soughtafter Cape Town suburbs which have been reaLising record prices weLL above nationaL averages for.comparabLe homes. The Latest FNB property barometer, which incLudes the first quarter of 2016, has reveaLed that the Western Cape is once again the dear market Leader, emerging streets ahead of the other provinces. Most notabLe is that, in contradiction to market forecasts of singLe digit growth in house prices, the Western Cape defied current The Cost of the Great Trek to THE I la A Bantry Bay — R58 million This

Most notabLe is that, in contradiction to market forecasts of singLe digit growth in house prices, the Western Cape defied current The Cost of the Great Trek to THE I la A Bantry Bay — R58 million This triplestorey designer villa on the exclusive Atlantic Seaboard is on a 1,482m2 plot and offers five bedrooms and five bathrooms. trends by reflecting an impressive yearonyear price growth of 12% measured over ten years, which is aLmost twice the nationaL average of 6.8 %.” The report cites IHS GLobaLinsight, which estimates over the tenyear period from 2005 to 2014 the Western Cape achieved the fastest growth of South Africa’s nine provinces, narrowLy ahead of Gauteng and KwaZuLuNataL, averaging 3.4 % per year. FNB Property Economist John Loos beLieves the Western Cape’s reLativeLy superior residentiaL market performance is due in part to its greater Land constraint.compared to, for exampLe, [andLocked Gauteng. The perception of the Western Cape as having a good provinciaL and Cape Town metro government couLd have been another positive factor impacting on the house price growth, in his view. “The same goes for the province’s.combination of a good LifestyLe as cities go, aLong with a strong servicesdominated economy that provides steadlly improving business and empLoyment opportunity,” says Loos. Recent Lightstone reports aLso confirmed the Cape’s dear status as market Leader when its research determined that Cape Town is not onLy home to seven of South Africa’s ten weaLthiest suburbs, it aLso boasts seven of the county’s ten most expensive streets. Steve Thomas, Franchise Manager for Lew Geffen Sotheby’s InternationaL ReaLty in Fake Bay and Noordhoek, adds: “Ironically, Cape Town’s market strength is being boosted by the burgeoning number of upcountry investors who now account for up to 20 % to 30 % of buyers in the most soughtafter areas, increasing during the peak of the summer hoLiday season.” Vivienne GottLieb, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty in Sea Point, Green Point and De Waterkant, says: “Not orgy are prices higher in Cape Town, but pLot sizes are aLso generally around 25 % smaller than the nationaL average because of the Limited avallabLe space between the ocean and the mountain. Areas near the ocean Like Fake Bay and the AtLantic Seaboard are especially Limited as the same topography that affords them their spectacuLar views aLso severeLy restricts deveLopment.” Karen Bosman, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty in Benmore, HurLingham Manor and Parkmore in Johannesburg, says that she has seen a notabLe increase over the past year, with around 25 % of her sellers now migrating south. “The majority are upper LSM professionak with schooLgoing chiLdren who are seeking a better LifestyLe for their famiLies. Many of my dients tray& to Cape Town reguLarLy and are aware that they are not going to be abLe to repLace the standard of home they enjoy in Johannesburg, but most feeL that the tradeoff is justifiabLe.”

Pretoria residents appear to be Less hasty to join the mass migration, with onLy around 10 % of sellers in soughtafter suburbs Like BrookLyn and MenLopark moving out of the province. So says Karin Petzer, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty, who adds that most of her dients who move to Cape Town prefer to rent initially to allow them time to get to know the city before deciding on an area in which to buy property. CharLene Leibman, Area SpeciaList for Lew Geffen Sothebys InternationaL ReaLty in Cape Town, Green Point — R19.25 million This threebedroom, threebathroom penthouse with wine celllar, private pool and pyjama lounge,.commands 360degree views. Senderwood, Bedford Park and St Andrews, says: “We are aLso seeing an increasing number of migrating seLLers retaining a smaer property in Johannesburg to accommodate husbands who stiLL work in Johannesburg and.commute weekLy.” According to Numbeo, the worLd’s Largest database of usercontributed data about cities and countries worLdwide, the cost of sectionaL titLe properties in Cape Town averages between 15 % and 37 % higher than in Johannesburg — depending on where you buy. FNB’s estimates put the Western Cape as the province with by far the strongest net inflow of repeat home buyers from other provinces. In fact, since 1999 the province has had a positive net inflow of repeat buyers. There are aLso fewer repeat buyers Leaving the province, according to Loos: “The Western Cape has deveLoped a.competitive advantage, which appears to be reflected in it having the Lowest percentage of repeat buyers Leaving the province (7.3 % of totaE repeat buyers), as weLL as by far the strongest net inward migration rate of repeat buyers from other provinces.” With the Western Cape’s market strength widening the gap between property vaLues in other provinces, Geffen advises that thorough research is essentiaL for upcountry buyers to achieve maximum bang for their buck. “It is essentiaL for reLocating home seekers to do their homework before the finaE decision to move is even made. Property prices are higher in the Cape but there is stiLL vaLue to be found and, aLthough the advantages of Living here do outweigh the benefits of an extra reception room and enormous garden,.comprehensive research wiLL reduce the tradeoff by determining which areas and property options offer the best vaEue according to their needs.” Geffen concLudes: “I don’t foresee the growing influx of upcountry buyers abating any time soon as, over and above the LifestyLe advantages, investors aka benefit financiaLLy. Cape Town residentiaL property vaLues have consistentLy outperformed the other major centres in South Africa for a decade and it is now considered the most stabLe market in the country.”! Johannesburg, Robindale — R1,499 millio Most suburbs of Johannesburg will offer more house for your money than Cape Town, such as this threebedroom house in the north of Johannesburg.

“However, it has now become a steady flow which shows no signs of abating, as more and more peopLe are drawn to the reLaxed outdoor LifestyLe, reLiabLe municipaL service deLivery and perceived safety of the Western Cape.” LLoyd says that despite the migration becoming.commonpLace, she finds that a significant number of buyers from other provinces are stiLL surprised by the difference in property prices in.comparabLe suburbs. “Some peopLe have a hard time.coming to terms with the reaLisation that they have soLd their mansion in Johannesburg but wiLL orgy be abLe to afford a smaLLer, more modest home for the same money in Cape Town.” Geffen agrees: “ALthough many peopLe are generay aware that property is more expensive in the Cape, the reaLity can be a nasty shock, especiay when Looking at homes in the most soughtafter Cape Town suburbs which have been reaLising record prices weLL above nationaL averages for.comparabLe homes. The Latest FNB property barometer, which incLudes the first quarter of 2016, has reveaLed that the Western Cape is once again the dear market Leader, emerging streets ahead of the other provinces. Most notabLe is that, in contradiction to market forecasts of singLe digit growth in house prices, the Western Cape defied current The Cost of the Great Trek to THE I la A Bantry Bay — R58 million This triplestorey designer villa on the exclusive Atlantic Seaboard is on a 1,482m2 plot and offers five bedrooms and five bathrooms. trends by reflecting an impressive yearonyear price growth of 12% measured over ten years, which is aLmost twice the nationaL average of 6.8 %.” The report cites IHS GLobaLinsight, which estimates over the tenyear period from 2005 to 2014 the Western Cape achieved the fastest growth of South Africa’s nine provinces, narrowLy ahead of Gauteng and KwaZuLuNataL, averaging 3.4 % per year. FNB Property Economist John Loos beLieves the Western Cape’s reLativeLy superior residentiaL market performance is due in part to its greater Land constraint.compared to, for exampLe, [andLocked Gauteng. The perception of the Western Cape as having a good provinciaL and Cape Town metro government couLd have been another positive factor impacting on the house price growth, in his view. “The same goes for the province’s.combination of a good LifestyLe as cities go, aLong with a strong servicesdominated economy that provides steadlly improving business and empLoyment opportunity,” says Loos. Recent Lightstone reports aLso confirmed the Cape’s dear status as market Leader when its research determined that Cape Town is not onLy home to seven of South Africa’s ten weaLthiest suburbs, it aLso boasts seven of the county’s ten most expensive streets. Steve Thomas, Franchise Manager for Lew Geffen Sotheby’s InternationaL ReaLty in Fake Bay and Noordhoek, adds: “Ironically, Cape Town’s market strength is being boosted by the burgeoning number of upcountry investors who now account for up to 20 % to 30 % of buyers in the most soughtafter areas, increasing during the peak of the summer hoLiday season.” Vivienne GottLieb, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty in Sea Point, Green Point and De Waterkant, says: “Not orgy are prices higher in Cape Town, but pLot sizes are aLso generally around 25 % smaller than the nationaL average because of the Limited avallabLe space between the ocean and the mountain. Areas near the ocean Like Fake Bay and the AtLantic Seaboard are especially Limited as the same topography that affords them their spectacuLar views aLso severeLy restricts deveLopment.” Karen Bosman, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty in Benmore, HurLingham Manor and Parkmore in Johannesburg, says that she has seen a notabLe increase over the past year, with around 25 % of her sellers now migrating south. “The majority are upper LSM professionak with schooLgoing chiLdren who are seeking a better LifestyLe for their famiLies. Many of my dients tray& to Cape Town reguLarLy and are aware that they are not going to be abLe to repLace the standard of home they enjoy in Johannesburg, but most feeL that the tradeoff is justifiabLe.”

Pretoria residents appear to be Less hasty to join the mass migration, with onLy around 10 % of sellers in soughtafter suburbs Like BrookLyn and MenLopark moving out of the province. So says Karin Petzer, Area SpeciaList for Lew Geffen Sotheby’s InternationaL ReaLty, who adds that most of her dients who move to Cape Town prefer to rent initially to allow them time to get to know the city before deciding on an area in which to buy property. CharLene Leibman, Area SpeciaList for Lew Geffen Sothebys InternationaL ReaLty in Cape Town, Green Point — R19.25 million This threebedroom, threebathroom penthouse with wine celllar, private pool and pyjama lounge,.commands 360degree views. Senderwood, Bedford Park and St Andrews, says: “We are aLso seeing an increasing number of migrating seLLers retaining a smaer property in Johannesburg to accommodate husbands who stiLL work in Johannesburg and.commute weekLy.” According to Numbeo, the worLd’s Largest database of usercontributed data about cities and countries worLdwide, the cost of sectionaL titLe properties in Cape Town averages between 15 % and 37 % higher than in Johannesburg — depending on where you buy. FNB’s estimates put the Western Cape as the province with by far the strongest net inflow of repeat home buyers from other provinces. In fact, since 1999 the province has had a positive net inflow of repeat buyers. There are aLso fewer repeat buyers Leaving the province, according to Loos: “The Western Cape has deveLoped a.competitive advantage, which appears to be reflected in it having the Lowest percentage of repeat buyers Leaving the province (7.3 % of totaE repeat buyers), as weLL as by far the strongest net inward migration rate of repeat buyers from other provinces.” With the Western Cape’s market strength widening the gap between property vaLues in other provinces, Geffen advises that thorough research is essentiaL for upcountry buyers to achieve maximum bang for their buck. “It is essentiaL for reLocating home seekers to do their homework before the finaE decision to move is even made. Property prices are higher in the Cape but there is stiLL vaLue to be found and, aLthough the advantages of Living here do outweigh the benefits of an extra reception room and enormous garden,.comprehensive research wiLL reduce the tradeoff by determining which areas and property options offer the best vaEue according to their needs.” Geffen concLudes: “I don’t foresee the growing influx of upcountry buyers abating any time soon as, over and above the LifestyLe advantages, investors aka benefit financiaLLy. Cape Town residentiaL property vaLues have consistentLy outperformed the other major centres in South Africa for a decade and it is now considered the most stabLe market in the country.”! Johannesburg, Robindale — R1,499 millio Most suburbs of Johannesburg will offer more house for your money than Cape Town, such as this threebedroom house in the north of Johannesburg.

Generasies kan so saambly

Oplossings om ekonomiese druk te fnuik Die petrolprys styg kortkort, ‘n mandjie met basiese voedsel word jaar Ina jaar duurder, en die land se ekonomiese probleme is iets wat ons almal aan ons sakke voel. Volgens eiendomskenners het die moeilike ekonomiese omstandighede wat mense wereldwyd ervaar, huiseienaars gedwing om innoverende behuisingsoplossings te soek. Een van die gewildste neigings wat kenners tans sien, is dat verskillende generasies van ‘n familie saam woon om kostes te bespaar.

Daar is ook mense wat eiendomme koop waarvan ‘n gedeelte verhuur kan word om ‘n maandelikse inkomste te verseker. Al twee die behuisingsoplos sings behels dat ‘n groep mense saam onder een dak of op dieselfde perseel moet leef — wat verskeie uitdagings kan bied, se Sandy Geffen, uitvoerende direkteur van Lew Geffen Sotheby’s International Realty, luidens ‘n verklaring. Sy verduidelik dat multigenerasiehuishoudings wereldwyd toeneem. Met lewenskostes wat aanhou styg, is dit vir gesinne moeilik om deur die maand te kom en vir kinders om uit die huis te trek. “Jong volwassenes woon langer by hul ouers, daar is ‘n tekort aan bekostigbare huisvesting vir afgetredenes, en huiseienaarskap Vinnige felt: Luidens ‘n studie in die tydskrif Time verlede Novem ber woon nou aansienlik meer long volwassenes (van 18 tot 34 jaar oud) saam met hul ouers as in enige tydperk sedert die 1940’s. agente beslis ‘n toename in die vraag na eiendomme wat uitgebreide gesinne kan huisves. Benewens die geld wat families sodoende spaar, is daar verskeie ander voordele wat die tipe leefstyl mense bied. “In elke uitdagende situasie is iets positiefs, en in die geval is daar verskeie voordele — al is dit drie generasies wat saam in ‘n kleinerige huis woon,” meen Geffen. 50% word dikwels jare vertraag omdat jong gesinne en eerstehuiskopers nou vir baie groter deposito’s moet spaar,” voer Geffen aan. En verhuring? Dit kan ook aktiewe afgetredenes help om !anger in hul huis te bly as hulle met geld sukkel. Die belangrikste faktor wanneer jy ‘n huurder op jou eiendom of in jou huis wil laat woon, is om te verseker dat al die inwoners ‘n mate van privaatheid geniet. Die historiese eiendom in Simonstad is vir R9,7 miljoen in die mark. Dit dateer van 1902 en bestaan uit ‘n hoofhuis met vier slaapkamers en ‘n afsonderlike gebou met ‘n eenslaapkamerdakwoonstel en ‘n duplekswoonstel met drie slaapkamers. > 10% Geffen gee die riglyne vir multigenerasiehuishoudings: Bespreek almal se verantwoordelike, en maak seker dat almal hieroor saamstem.

Bepaal vooraf wat dit alles gaan behels as iemand hulp of versorging nodig gaan he. Vestig saam grense, en maak seker dat elke lid van die huishouding — van die jongste tot die oudste — die grense verstaan en respekteer. Generasies kan so saambly Samantha van den Berg Meer as die helfte van die huishoudings in SuidAfrika is multigenerasiehuishoudings. ,u1.71 : 1,111 Volgens Geffen is ‘n huurder op jou eiendom ‘n goeie opsie vir eienaars wat hul huislenings vinniger wil afbetaal of vir eerstehuiskopers. ‘n Eiendom om te deel, asseblief Volgens Geffen sien eiendoms Dit is die persentasie afgetredenes in SuidAfrika wat finansieel onafhanklik is. Kies jou gevegte mooi. Daar gaan soms algemene verskille en probleme tussen lede van die huishouding wees, maar dit hoef nie altyd op ‘n ernstige stryery uit te loop nie. Dit is belangrik dat om saam op een eiendom te woon, nie beteken dat Julie heeltyd in mekaar se geselskap moet wees nie. Elkeen wil soms van die ander wegkom en tyd vir hom of haarself he.

Demand soars in the South Peninsula

THE SCENIC laid back suburbs along the False Bay coastline and other South Peninsula areas were once all dominated by character period freestanding homes, but this is changing as ongoing sectional title and estate development remodels the property landscape. This is particularly true of Muizenberg and Fish Hoek, which have seen the most development in recent years, says Steve Thomas, franchise manager for Lew Geffen Sotheby’s International Realty in False Bay and Noordhoek. He says: “One of the main driving forces behind the ongoing development is growing demand for property as these areas continue to offer exceptional value and accessible prices in a city where property prices in many areas have spiralled beyond the reach of first time buyers.”

Muizenberg now.comprises 35.5 percent houses, 35.11 percent sectional title units and almost 30 percent estate homes. “Prices and sales volumes have surged in Muizenberg where the total annual value of apartment sales grew by 117 percent from R84 million in 2013 to R183m by the end of 2015 with an acceleration of 86 percent in unit sales which increased from 123 to 229 during this period. “Pis a result, the median apartment price showed a nominal 8 percent yearonyear increase from R680 000 in 2013 to R800 000 by the end of 2015.” Citing Lightstone data, Lew Geffen southern suburbs coprincipal Arnold Maritz says that between August 2015 and July this year, 200 sectional title homes changed hands in Muizenberg with more than half (108) being in the entry level price band of R400 000 to R800 000 at an average sale price of R594 000. “The second most active bracket was the R800 000 to R1.5m bracket with 68 sectional title properties sold at an average price of R1.04m. A further 12 units were sold for less than R400 000, and in the R1.5m to R3m price band there were nine sales and only three apartments sold for more than R3m. “However, of the 35 apartment sales recorded between May and July the R800 000 to R1.5m price band was the most active with 16 sales at an average sale price of R1.03m, while 13 apartment sales in the R400 000 to R800 000 bracket realised an average price of R602 000.” Thomas says although development has been more recent in Fish Hoek with only 25 percent of the properties being sectional title, 40 percent of all property sales in the past year were sectional title homes with the most active price band being the R800 000 to R1.5m, where 36 of the 88 apartments were sold at an average of R1.09m.

“In the entry R400 000 to R800 000 bracket, 34 units were sold at an average sale price of R606 000, while 17 sales were in the R1.5m to R3m price band with only one flat selling for under R400 000.” He says even Kommetj ie, known for its quaint freestanding homes is seeing the emergence of sectional title property sales, with two recent developments in the suburb and another on the cards. According to Lew Geffen, chairman of Lew Geffen Sotheby’s International Realty there has also been a spike in the demand for short and longterm rental property, with correspondingly rising rentals creating an excellent market for investment buyers who now account for 40 percent of all transactions. “The market is also being buoyed by the continued influx of upcountry buyers and a growing number of young investors under 35. “We are now also fielding more enquiries from international ‘swallows’ who are discovering that False Bay offers a more laidback lifestyle than the city and Atlantic seaboard with access to an array of attractions and amenities. “False Bay is a very affordable high growth, lower risk market that is showing good activity which looks set to continue.” In addition to the holiday lifestyle the area offers, residents enjoy proximity to an array of amenities, including excellent schools and medical services, several shopping centres, golf courses and outdoor and sports facilities, including scenic trails and beaches. Demand soars in the South Peninsula One of very few sectional title properties in Kommetjie, this twobedroom apartment is for sale at R2.195 million.

Atlantic Seaboard

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Although the exclusive Atlantic Seaboard market has remained largely impervious to the current economic downturn, there has been an infinitesimal shift with the freehold sector ceding a fraction of its market share to the flourishing sectional title sector.

Whilst this may in part be a barely perceptible nod to the market slump, there are several other key factors which are driving the expansion of the sectional title market, including a growing number of first time buyers, increased demand for lock-up-and-go convenience and ongoing densification in response to the growing demand for property.

This is according to Brendan Miller, Lew Geffen Sotheby’s International Realty Atlantic Seaboard and City Bowl CEO, who says that the rapid development of sectional title properties across all market segments is not only changing the property landscape of the Atlantic Seaboard but has also been a prominent driving force in the market’s consistent strength.

“Contrary to the current national trend, the apartment market here is still very much a buyer’s market and we find that correctly priced properties are usually snapped up within two weeks of being released onto the market.

“This has led to a dearth of sale stock, especially in the lower to mid-market segments, with property values spiralling upwards and record sales prices being achieved.”

Simony dos Santos, Sectional Title Area Specialist for Lew Geffen Sotheby’s International Realty in Green Point, Sea Point and Three Anchor Bay, says: “Buyers are scrabbling for apartments in these suburbs as they still offer an accessible, albeit increasingly scarce, entry point into this exclusive market.

“A modern studio or older one bedroom apartment in Sea Point, Green Point and Three Anchor Bay can still be bought from around R1.7 million, although entry level properties priced between R2m and R2.5m are now more common.

“Two bedroom and three-bedroom flats generally start at R2.8m and R3.6m respectively, depending on condition and location, whilst a budget of between R4m and R8m offers buyers a much wider variety, from beautifully restored apartments in older blocks to modern units in newer developments.”

Citing Lightstone data, dos Santos says: “During the 12 months ending 31 May, 150 sectional title properties changed hands in Green Point, 394 flats were sold in Sea Point and 80 changed hands in Three Anchor Bay. In all three suburbs, the R1.5m to R3m price band recorded the most sales.”

Jolene Alterskye, Sectional Title Area Specialist for Lew Geffen Sotheby’s International Realty, says: “Although we are seeing the most activity in the lower and mid-market sectors, it is at the top end of the market that we have seen the most significant growth and transformation in recent years.

“Preparation for the 2010 World Cup spilled over into these suburbs with extensive upgrades and exponential development boosting the top end of the market.

“Nowadays it’s not uncommon to see listings for apartments priced between R14m and R19m, with several sectional title properties now qualifying for elite trophy home status, which was traditionally the preserve of the more upmarket suburbs like Clifton and Bantry Bay.”

Another suburb to benefit from the development surge prompted by the World Cup is Mouille Point.

Miller says: “For many years Mouille Point was regarded as the poor relation on this exclusive strip and its dramatic transformation is not unlike the classic Cinderella rags-to-riches tale.”

“In less than 10 years, the average apartment sale price in this small suburb grew by almost 350%, from R1.8m in 2007 to R8.09m by the end of 2015, during which properties seldom spent more than two months on the market and the average discrepancy between asking and selling piece was only 5%”.

Miller adds that in the preceding 12 months ending 31 May, 24 of the 47 apartments sold were in the R3m-plus bracket, with an average sale price of just under R6.4m, while only 15 sales were in the mid-market price band of R1.5m to R3m.

Another Atlantic Seaboard suburb which has experienced a dramatic turnaround in recent years is Bakoven, which was once seen as a sleepy extension of Camps Bay if it was noticed at all.

However, rapid sectional title development has catapulted this hamlet into the limelight and it now not only commands the highest rentals in South Africa, but is also setting the bar in terms of sales prices achieved on the Atlantic Seaboard.

“Last year six units in the recently developed Boulder Apartments were sold at an average price of almost R18m a piece, with the two most expensive apartments fetching R33.6m at R78 209 per m² and R30m at just under R70 000 per m².”

Long regarded as the jewel in the crown on the Atlantic Seaboard, Clifton apartments have always commanded the highest prices and rewarded investors with the best return on investment, but the crown prince is now sharing pole position with neighbouring Bantry Bay.

This is according to Lew Geffen, Chairman of Lew Geffen Sotheby’s international Realty who says that Bantry Bay has benefited greatly from the ongoing development of its thriving sectional title market.

“Deeds Office records show that Bantry Bay has increasingly dominated this market since 2010 with a 30% market share and 314 apartment sales recorded at the end of April 2016 achieving a combined value of R1.6 billion.

“It’s closely followed by Clifton where 143 sales realised R1.3 billion and Camps Bay with 222 sales fetching R1.045bn during the same period.”

“Upmarket apartments in the suburb are now outperforming the solid housing market and, measured in 2015, displayed an outstanding nominal 18% ROI per annum over eight years.

According to Geffen, Bantry Bay’s exponential market growth is especially evident when measured over the last six years.

“The sectional title market performed brilliantly during this period with the highest average nominal %ROI of 21%, followed by Camps Bay with 16%.”

Geffen adds that of the 46 apartments sold in Bantry Bay during the past 12 months, 24 transactions were at the upper end of the market in the R3m plus price band at an average sale price of R7.62m.

Bantry Bay may have snuck up on Clifton in recent years, but Clifton still commands the highest prices as the exclusive enclave boasts the highest number of apartment blocks with direct ocean views and, in many cases, access to its famous beaches.

Eleven of the 14 sales during the past year realised an average sale price of R15.05m whilst only three sold for less than R3m.

Although Camps Bay has seen less sectional title development than its fellow upmarket neighbours, this market segment is very active and, of the 29 apartment sales during the 12 months, 26 were at the upper end of the market at an average sale price of R7.13m.

Geffen concludes: ““Apartment living on the Atlantic Seaboard will always be an attractive option, and the sectional title market will continue to perform well as buyers are prepared to pay a premium for top-end lifestyle properties in a well-run city within close proximity to world class amenities.

Buying Property

Best Nationwide Stock

Finding the perfect home is never easy. Whether you are looking for your ideal first home, seeking a more spacious property to accommodate your growing family, or downsizing to a more manageable space after your children have finally left the nest, the search to find a property which suits all of your needs can be long and exhausting. It does not matter if you are a first time buyer or have gone through the process a few times before, buying a house can be a daunting and complicated undertaking.

For most people, buying property is the biggest investment they will ever make, which is why it is important to ensure that you have made the right choice. A home is more than just brick and mortar; it is a special place where your hopes and dreams come to life. Finding the right house might require countless hours of searching before you finally discover that one special property which truly speaks to you.

One not only has to consider the property itself, but also the surrounding area and the amenities it has to offer. With so many choices and variables to take into account, choosing the right home may seem like an insurmountable task. At Lew Geffen Sotheby’s International Realty we are committed to providing you with the best choice of quality stock in an area which caters to your every need.

Whether you are looking for an investment property, a lifestyle upgrade or a smaller lock-up and go to accommodate the ever changing ebb and flow of your life, we have the perfect property for you. Your search will seem like a small price to pay when you do find the perfect house. There are truly few moments as rewarding as the feeling you get when you walk through the door for the first time and realise, you are home.

This is why we are passionate about uniting the right buyer with the right property, ensuring that the sellers can sell their home to someone who will love and cherish it as much as they did, while providing buyers with a home in which they can flourish.

At Lew Geffen Sotheby’s International Realty we are committed to partnering with you to make this life changing decision easier by dedicating our professional efforts to find the best stock in our nation-wide selection of areas, allowing you to choose your ideal home.

We sell masterpieces in every area from cottages to mansions.

What will you pay for an Atlantic Seaboard apartment?

Although the exclusive Cape Town Atlantic Seaboard property market has remained largely impervious to the current economic downturn, there has been an a very small shift, with the freehold sector ceding a fraction of its market share to the flourishing sectional title sector.

This studio apartment in Sea Point, Cape Town, offers one bedroom, one bathroom, open-plan living, fitted kitchen, private jacuzzi and secure undercover parking. It is on the market for R2.5 million – click here to view.

This is according to Brendan Miller, Lew Geffen Sotheby’s International Realty Atlantic Seaboard and City Bowl CEO, who says while this may in part be a barely perceptible nod to the market slump, there are several other key factors which are driving the expansion of the sectional title market, including a growing number of first-time buyers, increased demand for lock-up-and-go convenience and ongoing densification in response to the growing demand for property.

Miller says the rapid development of sectional title properties across all market segments is not only changing the property landscape of the Atlantic Seaboard but has also been a prominent driving force in the market’s consistent strength.

He says contrary to the current national trend, the apartment market here is still much a buyer’s market and they find that correctly priced properties are usually snapped up within two weeks of being released onto the market.

He says this has led to a dearth of sale stock, especially in the lower to mid-market segments, with property values spiralling upwards and record sales prices being achieved.

How much does it cost to live on the Atlantic Seaboard?

Sea Point, Green Point and Three Anchor Bay

Situated in Bantry Bay, this apartment has two bedrooms, one bathroom, an open-plan kitchen with fitted cabinets and a balcony. It is selling for R3.05 million – click here to view.

Simony dos Santos, Sectional Title Area Specialist for Lew Geffen Sotheby’s International Realty in Green Point, Sea Point and Three Anchor Bay, says buyers are scrabbling for apartments in these suburbs as they still offer an accessible, albeit increasingly scarce, entry point into this exclusive market.

Dos Santos says a modern studio or older, one bedroom apartment in Sea Point, Green Point and Three Anchor Bay can still be bought from around R1.7 million, although entry-level properties priced between R2 million and R2.5 million are now more common.

“Two bedroom and three bedroom flats generally start at R2.8 million and R3.6 million respectively, depending on condition and location, while a budget of between R4 million and R8 million offers buyers a much wider variety, from beautifully restored apartments in older blocks to modern units in newer developments.”

Citing Lightstone data, dos Santos says during the 12 months ending 31 May, 150 sectional title properties changed hands in Green Point, 394 flats were sold in Sea Point and 80 changed hands in Three Anchor Bay. She says in all three suburbs, the R1.5 million to R3 million price band recorded the most sales.

Jolene Alterskye, Sectional Title Area Specialist for Lew Geffen Sotheby’s International Realty, says although they are seeing the most activity in the lower and mid-market sectors, it is at the top end of the market that they have seen the most significant growth and transformation in recent years.

This penthouse is situated in Green Point and offers three bedrooms, three bathrooms, wine cellar, study, pyjama lounge, private swimming pool and two lock-up-and-go garages. It is priced at R16.995 million – click here to view.

She says preparation for the 2010 World Cup spilled over into these suburbs, with extensive upgrades and exponential development boosting the top-end of the market.

Nowadays, she says it’s not uncommon to see listings for apartments priced between R14 million and R19 million, with several sectional title properties now qualifying for elite trophy home status, which was traditionally the preserve of the more upmarket suburbs like Clifton and Bantry Bay.

Mouille Point

Another suburb to benefit from the development surge prompted by the World Cup is Mouille Point.

Miller says for many years Mouille Point was regarded as the poor relation on this exclusive strip, and its dramatic transformation is not unlike the classic Cinderella rags-to-riches tale.

“In less than 10 years, the average apartment sale price in this small suburb grew by almost 350%, from R1.8 million in 2007 to R8.09 million by the end of 2015, during which properties seldom spent more than two months on the market and the average discrepancy between asking and selling piece was only 5%”.

According to Miller, in the preceding 12 months ending 31 May, 24 of the 47 apartments sold were in the R3 million-plus bracket, with an average sale price of just under R6.4 million, while only 15 sales were in the mid-market price band of R1.5 million to R3 million.

Bakoven

This Sea Point apartment has two bedrooms, two bathrooms, open-plan living areas, a built-in kitchen, covered patio and garage. It is on the market for R5.95 million – click here to view.

Another Atlantic Seaboard suburb which has experienced a dramatic turnaround in recent years is Bakoven, which was once seen as a sleepy extension of Camps Bay if it was noticed at all.

However, rapid sectional title development has catapulted this hamlet into the limelight and it now not only commands the highest rentals in South Africa, but is also setting the bar in terms of sales prices achieved on the Atlantic Seaboard.

“Last year, six units in the recently developed Boulder Apartments were sold at an average price of almost R18 million apiece, with the two most expensive apartments fetching R33.6 million at R78 209 per square metre and R30 million at just under R70 000 per square metre.”

Bantry Bay

Long regarded as the jewel in the crown on the Atlantic Seaboard, Clifton apartments have always commanded the highest prices and rewarded investors with the best return on investment, but the crown prince is now sharing pole position with neighbouring Bantry Bay.

According to Lew Geffen, Chairman of Lew Geffen Sotheby’s international Realty, Bantry Bay has benefited greatly from the ongoing development of its thriving sectional title market.

He says Deeds Office records show that Bantry Bay has increasingly dominated this market since 2010, with a 30% market share and 314 apartment sales recorded at the end of April 2016, achieving a combined value of R1.6 billion.

Geffen says it’s closely followed by Clifton where 143 sales realised R1.3 billion and Camps Bay with 222 sales fetching R1.045 billionn during the same period.

“Upmarket apartments in the suburb are now outperforming the solid housing market and, measured in 2015, displayed an outstanding nominal 18% ROI per annum over eight years.”

According to Geffen, Bantry Bay’s exponential market growth is especially evident when measured over the last six years. He says the sectional title market performed brilliantly during this period, with the highest average nominal ROI of 21%, followed by Camps Bay with 16%.

Of the 46 apartments sold in Bantry Bay during the past 12 months, 24 transactions were at the upper end of the market in the R3 million-plus price band at an average sale price of R7.62 million.

Bantry Bay may have snuck up on Clifton in recent years, but Clifton still commands the highest prices as the exclusive enclave has the highest number of apartment blocks with direct ocean views and, in many cases, access to its famous beaches.

Eleven of the 14 sales during the past year realised an average sale price of R15.05 million while only three sold for less than R3 million.

Although Camps Bay has seen less sectional title development than its fellow upmarket neighbours, this market segment is active and, of the 29 apartment sales during the 12 months, 26 were at the upper end of the market at an average sale price of R7.13 million.

Geffen says apartment living on the Atlantic Seaboard will always be an attractive option, and the sectional title market will continue to perform well as buyers are prepared to pay a premium for top-end lifestyle properties in a well-run city within close proximity to world-class amenities.